Flights to Europe Are About to Get More Expensive

Flights to and within Europe are about to get more expensive thanks to a law that just went into effect on the first of the month.

People may love to celebrate the beginning of a new year, but this time around, there's a little bit of bad news as well. Flights to and within Europe are about to get more expensive thanks to a law that just went into effect on the first of the month.

The European Union (EU) has decided to include aviation in its Emissions Trading System. In this system, the EU doles out a certain number of credits for the amount of CO2 emissions airlines need to operate. If an airline needs more than that, it will have to buy them. That means air travel costs for airlines are going to go up when Europe is involved in the travel plan. And you know what that means? Higher ticket prices.

Airlines based outside the EU are currently fighting this, arguing that it's illegal for US-based airlines to have to comply with this rule. Why? Because countries argue that the EU has no right to apply this to airlines that aren't based in the EU. It's a whole big web of politics and law, and it will get worked out one of these days. But as of now, costs are going up and that means the airlines will have to pass it along to you, the traveler.

Lufthansa has been very vocal about this, claiming that since the allocations are based on the 2004–2006 period, the airline only has 65 percent of the credits it needs to operate today's schedule. Purchasing the 35 percent difference will cost the company about 130 million euros this year alone. Lufthansa says it will incorporate that cost into the fuel surcharge it currently tacks on to tickets, and that, for now, it won't raise that fee—but the door is open. The airline is likely also waiting to see if there's some sort of resolution with other countries around the world.